FII Activity & Nifty View

FII Activity & Nifty View :

Yesterday, FII's were net buyers in cash market of worth Rs. 350 crores. Whereas, in Index Futures, their activity was quite, they sold of Rs 188 crores with fall in open interest, suggesting long unwinding in last trading session.

In Index options front, FIIs were net buyer of Rs. 588 crores with rise in open interest. PCR-OI increased with rise in IV’s which indicates buying in
put options. We saw decent amount of buildup in deep out the money call options of 9000 strike. Whereas, in put options, 8200 and 8500 strikes added some open interest. Maximum buildup in current series in seen in 9000 call and 8200 put
options.

Seeing the overall data, we believe Nifty may strengthen from current levels, as too many long are in system. We are hardly seeing selling in Index Futures, in fact FII’s had formed reasonable fresh longs last week. We suggest to trade with positive
bias in market.